4006 / May a participant who receives a distribution of an annuity from a qualified pension or profit sharing plan surrender the annuity and roll over the proceeds?

Where a qualified pension or profit sharing plan distributes an ordinary annuity contract, deferred or otherwise, to a participant, the annuity contract or cash amount received on surrender of the contract may be rolled over if the distribution is an eligible rollover distribution and meets the requirements necessary for rollover of such a distribution ( Q 3998).¹ For purposes of the 60-day rule, the distribution takes place on distribution of the annuity contract from the plan, not on its surrender or transfer to the receiving plan ( Q 4016).²